Mastercard Incorporated (MA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-20.9%

$521.60

vs $659.76 price

Levered DCF

$568.31

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

10.92

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	34.49×	37.83×	35.96×	33.89×	40.88×	55.77×	37.42×	33.51×
P/B	66.19×	75.11×	58.11×	53.45×	48.55×	55.96×	51.53×	36.4×
P/S	15.62×	17.29×	16.04×	15.14×	18.8×	23.37×	17.99×	13.14×
EV / EBITDA	25.34×	29.58×	27.29×	26.53×	31.53×	41.31×	29.13×	24.98×
Gross margin	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Operating margin	57.6%	58.0%	58.3%	57.2%	53.4%	52.8%	57.2%	48.7%
Net margin	45.6%	45.7%	44.6%	44.7%	46.0%	41.9%	48.1%	39.2%
Current ratio	1.03×	1.03×	1.17×	1.17×	1.29×	1.61×	1.42×	1.39×
Debt / equity	2.46×	2.81×	2.26×	2.23×	1.9×	1.98×	1.45×	1.17×
Interest coverage	26.17×	25.27×	25.44×	27.01×	23.39×	21.27×	43.14×	39.15×
Dividend yield	0.5%	0.5%	0.5%	0.6%	0.5%	0.4%	0.4%	0.5%
Payout ratio	18.4%	19.0%	19.3%	19.2%	20.0%	25.0%	16.6%	17.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	193.5%	198.5%	161.6%	157.7%	118.8%	100.3%	137.8%	108.6%
Return on invested capital	47.4%	46.5%	43.6%	43.4%	33.6%	29.8%	46.5%	43.0%
Return on assets	27.6%	26.8%	26.4%	25.6%	23.1%	19.1%	27.8%	23.6%
Free cash flow yield	3.2%	2.9%	2.9%	3.2%	2.4%	1.8%	2.5%	2.9%
Earnings yield	2.9%	2.6%	2.8%	3.0%	2.4%	1.8%	2.7%	3.0%
Enterprise value	$520.5B	$496.9B	$409.7B	$343.6B	$361.5B	$360.2B	$305.2B	$196B
Net debt / EBITDA	0.41×	0.58×	0.47×	0.54×	0.57×	0.29×	0.15×	-0.04×
Cash conversion cycle (days)	51	49	59	56	58	104	119	115